Over 26 typical security incidents happened in February. Let’s see the security evaluation of crypto projects.
According to incomplete statistics, more than 26 typical security incidents happened in the whole blockchain ecosystem in February, 2021. Among the highly stricken areas, DeFi showed a significant increase compared with January, which needs to be paid attention to.
Currently, DeFi is now enjoying a second wave of popularity as the crypto economic cycle begins a new round of upswing. From the perspective of the DeFi ecosystem, the markets of yield farming, decentralized exchanges, credit lending and other protocol (application) products resonate strongly, and the roller-coaster-like value waves have attracted countless investors to enter and leave the market.
But with the rapid development of industrial ecosystem, security is still the biggest concern point. Fraud, runaway, code vulnerabilities, Trojan attacks and other security risks are still closely followed. The Hotpot Fund believes that the frequency of security incidents fundamentally requires DeFi ecosystem, the entire blockchain industry, and all practitioners to be alert to dangers in peace, hang the sword of Damocles, and remember not to ignore the safety protection and safety construction work.
The Hotpot Fund is a transparent fund project operating on the public blockchain, which is composed of a set of smart contracts deployed on Ethereum. It is the first fund project in DeFi at present that has the characteristics of security and transparency, easy to participate, stability and openness. Through the Hotpot Fund, even new users who know little about DeFi can easily participate in DeFi investment to earn income. The raised funds are managed by the professional fund managers to help users maximize the returns.
In terms of the project security that is mostly concerned, the Hotpot Fund advocates to take safety measures from different dimensions such as security audit, operation fund, team protection, to provide users with maximum security guarantee.
As we know, DeFi is a smart contract of the specific code. Smart contract code is immutable and operates in exactly the way specified, which ensures that the DeFi project is decentralized, fair and transparent. An excellent project should have passed the smart contract audit, which, to a large extent, reduces the risk of contract code vulnerabilities.
At present, the Hotpot Fund has established a partnership with Knownsec, a well-known security audit company in blockchain, conducted strict audit of all smart contracts and will cooperate with internationally renowned technical security institutions to strengthen the code audit protection and build a leading security protection system. The founding team of the Hotpot Fund is led by Richard Du, a well-known technical expert. All the core members have many years of experiences and they will provide the long-term safety protection for the Hotpot Fund.
For the operating mechanism, the basic way of the Hotpot Fund is that investors deposit funds into the smart contract of the Hotpot Fund, then the fund managers will pool funds together and invest into Uniswap exchange. The security of Uniswap has been validated, and the tokens invested by the Hotpot fund are under strict selection, because asset safety is the first priority.
The fund manager can only perform within the range set by the smart contract, and all the investment operations are recorded on the chain and can be checked by the user at any time. In the process of investment, the user can deposit and withdraw assets at any time, no lockup or window period. In addition, the Hotpot Funds only make portfolio investment in trusted tokens, which are specifically set up in our contract. At present, the first phase supports three stablecoin investments including USDT, USDC and DAI.
In the blockchain world, code is the law. The Hotpot Fund, with the leading smart contract, builds the cornerstone of DeFi fund ecosystem, and with the professional technical team and operation mechanism, maximizes the profits for users on the basis of top security protection. From the perspective of industrial ecosystem, the ecological security also requires all parties to work together to build a protective barrier with technological means and innovative models, and jointly promote the steady development of DeFi ecosystem.
